DYNAVAX TECHNOLOGIES CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share amounts) (Unaudited) Three Months Ended Twelve Months Ended December 31, December 31, -------------------- -------------------- 2010 2009 2010 2009 --------- --------- --------- --------- Revenues: Collaboration revenue $ 371 $ 1,455 $ 19,535 $ 35,534 Grant revenue 1,243 556 3,940 3,477 Service and license revenue 152 178 475 1,307 --------- --------- --------- --------- Total revenues 1,766 2,189 23,950 40,318 Operating expenses: Research and development 12,951 9,506 53,680 38,708 General and administrative 4,185 4,052 16,879 15,745 Amortization of intangible assets 245 245 980 980 --------- --------- --------- --------- Total operating expenses 17,381 13,803 71,539 55,433 --------- --------- --------- --------- Loss from operations (15,615) (11,614) (47,589) (15,115) Interest income 32 4 85 178 Interest expense (425) (4) (1,654) (124) Other income (expense) 886 (26) (8,150) (66) --------- --------- --------- --------- Net loss (15,122) (11,640) (57,308) (15,127) Consideration paid in excess of carrying value of the noncontrolling interest in SDI(1) -- (19,671) -- (19,671) Add: Losses attributed to noncontrolling interest in SDI -- 1,041 -- 4,233 --------- --------- --------- --------- Net loss attributable to Dynavax $ (15,122) $ (30,270) $ (57,308) $ (30,565) ========= ========= ========= ========= Basic and diluted net loss per share attributable to Dynavax common stockholders $ (0.14) $ (0.73) $ (0.69) $ (0.76) ========= ========= ========= ========= Shares used to compute basic and diluted net loss per share attributable to Dynavax common stockholders 106,035 41,420 82,463 40,350 ========= ========= ========= ========= (1) Symphony Dynamo, Inc. DYNAVAX TECHNOLOGIES CORPORATION RECONCILIATION OF GAAP REVENUES TO PRO FORMA REVENUES (In thousands) (Unaudited) Three Months Twelve Months Ended Ended December 31, December 31, ----------------- ----------------- 2010 2009 2010 2009 -------- -------- -------- -------- GAAP total revenues $ 1,766 $ 2,189 $ 23,950 $ 40,318 ADD: Collaboration funding for SDI programs -- 813 -- 3,364 LESS: Recognition of deferred revenue from collaborations -- -- 10,000 28,485 ======== ======== ======== ======== Pro forma total revenues(1) $ 1,766 $ 3,002 $ 13,950 $ 15,197 ======== ======== ======== ======== (1) These pro forma amounts are intended to illustrate the Company's revenues including collaboration funding provided for the SDI programs and excluding certain other items. The collaboration funding is the amount attributed to the noncontrolling interest in SDI in the Company's consolidated statement of operations that would have been reported as revenue if SDI's results of operations were not consolidated with those of the Company. Management of the Company believes the pro forma results are a more useful measure of the Company's revenues because it provides investors the ability to evaluate the Company's operations in the manner that management uses to assess the continued progress of operating programs. These pro forma results are not in accordance with, or an alternative for, generally accepted accounting principles and may be different from pro forma measures used by other companies. DYNAVAX TECHNOLOGIES CORPORATION RECONCILIATION OF GAAP OPERATING EXPENSES TO PRO FORMA OPERATING EXPENSES (In thousands) (Unaudited) Three Months Twelve Months Ended Ended December 31, December 31, ----------------- ----------------- 2010 2009 2010 2009 -------- -------- -------- -------- GAAP total operating expenses $ 17,381 $ 13,803 $ 71,539 $ 55,433 LESS: Stock-based compensation expense 858 933 2,410 3,035 Amortization of intangible assets 245 245 980 980 -------- -------- -------- -------- Pro forma total operating expenses(2) $ 16,278 $ 12,625 $ 68,149 $ 51,418 ======== ======== ======== ======== (2) These pro forma amounts are intended to illustrate the Company's operating expenses excluding certain non-cash charges in accordance with the financial statements that management uses to evaluate the Company's operations. These pro forma results are not in accordance with, or an alternative for, generally accepted accounting principles and may be different from pro forma measures used by other companies. DYNAVAX TECHNOLOGIES CORPORATION SELECTED BALANCE SHEET DATA (In thousands) (Unaudited) December 31, December 31, 2010 2009 ------------ ------------ Assets Cash, cash equivalents and marketable securities $ 72,154 $ 36,720 Property and equipment, net 6,404 7,997 Goodwill 2,312 2,312 Other intangible assets, net 299 1,279 Other assets 3,080 2,162 ------------ ------------ Total assets $ 84,249 $ 50,470 ============ ============ Liabilities and stockholders' equity Accounts payable $ 2,329 $ 1,686 Accrued liabilities 10,943 7,507 Warrant liability to Holdings -- 2,567 Current portion of deferred revenue 1,429 2,718 Noncurrent portion of deferred revenue 5,655 17,083 Long-term note payable to Holdings 10,939 9,342 Long-term contingent liability to Holdings 843 3,040 Other long-term liabilities -- 151 Total stockholders' equity 52,111 6,376 ------------ ------------ Total liabilities and stockholders' equity $ 84,249 $ 50,470 ============ ============
Contact Information: Contacts: Jennifer Lew Vice President, Finance 510-665-7217 Michael Ostrach Vice President and Chief Business Officer 510-665-7257